Technical & Fundamental Oil Reports Specialists

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Slingshot conditions – watch the 8s. They hold all the clues. Vulnerable.

Published Wednesday, April 22nd, 2015

The market is behaving very correctly from a technical perspective. It had looked heavy and vulnerable for two to three days, with RBOB’s struggle at the increasingly strong resistance between 195.03/54 as evidence of this, and with the stochastics high and wobbling. The key yesterday was the action at the breached 5 day MAs – they had held Monday night but were moved below early Tuesday morning. The failure to recover over them immediately gave the contracts the 8 day MAs to head for. These became the intra-day slingshot (s/s) targets. The 8s were hit on every contract and now the contracts are below them. Having completed a slingshot (s/s) move from the 5 to 8s one can now expect a move from the 8 to the 13s (the 13s are “m” in the support column below), providing the contracts remain below the 8s. This is what I mean by a market that is behaving technically correctly. The message today is watch the 8s – they hold all the clues and will provide the guidance. WTI is below the 8 around 56.53. Use this as a pivot. Whilst below it is highly likely to head s/s fashion for the 13 around 55.30.

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Posted by Robin Bieber